Crankworx Event Funding Application - 13th August 2020 - S,P&F - Rotorua Lakes Council
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Crankworx Event
Funding Application
13th August 2020 - S,P&F
Purpose of the paper
• Seek an increase of $100,000 funding in both the 2020/21 and 2021/22 financial years
for Crankworx Rotorua from the Economic Recovery Fund.
• Request a long term commitment of $250,000 per annum plus an extension to the
existing underwrite through to 2027.
2
Options for consideration
Option Investment Impact
1. Continue funding at previous level RLC’s investment in previous years has been a • Reduced financial stability for MBE ltd.
maximum of $150k (from RLC, RED & RTIP) • Does not reflect significant impact of COVID-19
• No foreseeable future without ongoing public
investment
2. Increase funding to $250k / year Funding increase of $100k for the full period • Allow event organisers to move forward with
2021-2027: $250k per annum confidence
Recommended • Positive signal to external parties
• Maximise event leverage
• Ensure Rotorua benefits
3. No further funding RLC could choose to make no further • Create significant funding gap
investment • Unlikely Crankworx would continue in Rotorua
• Likely that Crankworx International event
owners would explore alternative location
options
Investment rationale
1. Economic benefit 2. Destination promotion
• Average direct yearly economic impact of • Place Rotorua on the world stage
$4.3m
• Strengthen Rotorua’s direct association with
• Total economic impact of $25.8m since 2015 Mountain Biking: A sport rapidly growing in
popularity
• Estimated annual spend due to mountain biking
in Rotorua of $26-43m (2018 study)
• Significant leverage of MBIE funding
3. Culture & community
• Supported growth of local mountain biking
ecosystem: Creating significant jobs and further • Worldwide promotion of Maori culture
economic contribution • Strong community support
• Compliments recent investment in • Extensive community engagement including,
Whakarewarewa forest Education, Women’s skills programme and
Mobility / Accessibility programmeBefore Covid, we were seeing strong
growth in forest mountain biking use
Yearly mountain bike movements into the forest at
Waipa carpark
195k
159k
$26m-$43m per annum
136k
estimated spend on mountain
biking in Rotorua (2018 report)
2018 2019 2020
Year ending FebruaryPost lockdown, mountain biking is
gaining strength and growing
Mountain bike movements into the forest at Waipa Mountain bike users entering the forest by
carpark visitor type (post-lockdown survey)
31k Locals
10%
20k
Overnight visitors
45%
45%
Day visitors
Equivalent period 2019 Since Level 1 this year
Movements since domestic travel restarted at Level 1; compared to
equivalent period last yearMountain biking businesses are a significant
contributor to our local economy
Examples of mountain biking businesses based in an around Rotorua:
7Crankworx has strong support from local
businesses across key sectors...
“We see buyers and investors
attracted to our city directly as
a result of the Crankworx
event”
Steve Lovegrove, McDowell Real Estate Ltd Trading
as Professionals
8Crankworx has strong support from local
businesses across key sectors...
“Crankworx in Rotorua has led to
business opportunities… that simply
would not be possible had the event
not been hosted here”
Matt Browning, Salt and Tonic Limited
9Crankworx has strong support from local
businesses across key sectors...
“It has become clear… that Mountain Biking is
key to our city’s tourist value proposition…
and that Crankworx Rotorua has played a key
role in putting our destination on the map”
Justin Hutton on behalf of the Rotorua Tourism Investment Partnership Inc
(RTIP).
10Crankworx has strong support from local
businesses across key sectors...
“First hand, detailed insight into the
management of the Rotorua Crankworx
event… [has] greatly enhanced the learning
of our students… it is a window on the world
for them”
Richard Holliday, Head of Faculty, Rotorua Boys High School
11Crankworx has strong support from local
businesses across key sectors…
“As a collective of executive managers… we
write to express our full support of Crankworx
Rotorua and to emphasise to government
partners the importance of continuing to
invest… to ensure that we as a region
continue to reap the significant rewards of
hosting this significant major event”
Collective of Executive managers from the Accommodation
sector
*Inus Rademeyer - Jet Park Hotel, Blair Chalmers – Copthorne Rotorua, Ann Gregor – Peppers on the Point, Adrian Mclnroy – Distinction Rotorua, Vinicuis Belotti – Rydges Rotorua, KV Ranawat
– Lake Rotorua Hotel, Christine McDonald- Regent of Rotorua, Rajas Patil – Sudima Hotels, Edward Judd – Novotel Rotorua, Pipiana Whiston – Millennium Rotorua, Kent Breeze – Holiday Inn
12Q&A
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